Router Protocol, a Coinbase Ventures-backed decentralized blockchain network, enhances cross-chain functionality through a new integration with Solana.
The partnership improves interactions between the chains, allowing users to access multiple blockchain ecosystems and improve decentralized applications, according to a press release shared with crypto.news.
The move will allow Solana’s (SOL) ecosystem, including its decentralized exchanges, non-fungible token marketplaces, and decentralized finance projects, to connect with other major blockchain networks such as Ethereum (ETH), Avalanche (AVAX), and Polygon (POL).
Router Protocol is a decentralized tool for cross-chain communication. It essentially helps blockchains communicate with each other. This is important because many blockchains operate in isolation, limiting their ability to share assets, data or services across networks.
By integrating with Router, Solana users and developers can now collaborate with more than 25 other blockchains, expanding their reach and liquidity, the release said.
You might also like: Bitwise files an XRP ETF offering with SEC
The Solana ecosystem
Solana has built a strong presence in DeFi, NFTs, and even meme coins. Top DeFi projects like Jupiter (JUP) and Raydium have total trading volume in the billions, while NFT marketplaces like Magic Eden have minted millions of NFTs.
However, despite this growth, Solana has faced challenges due to its unique Proof of History consensus, which has limited interoperability with other networks.
You might also like: Lamborghini and Animoca Brands unveil blockchain-based supercars for web3 games
Why cross-chain is important
Cross-chain functionality allows different blockchains to communicate with each other, opening up new possibilities for users and developers. For example, Solana’s decentralized apps can now transact across multiple chains from a single interface.
This includes tasks such as exchanging tokens, staking assets or trading NFTs across different networks, simplifying the user experience.
Router Protocol launched its Layer-1 solution, Router Chain, in July to enable cross-chain interoperability between Bitcoin, Ethereum and the Cosmos (ATOM) ecosystem. The launch introduced chain abstraction technology, allowing developers to build decentralized applications for cross-chain money markets and omnichain tokens.
